Bermaz IPO, Megaworld, STI bond offers approved

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THE Securities and Exchange Commission (SEC) approved three fund-raising applications on Thursday worth more than P36 billion, consisting of an initial public offering (IPO) and two bond issues.

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Armand Pan, SEC spokesperson, told reporters in a text message that the commission in an en banc session approved the P1.24-billion IPO of Mazda dealer Bermaz Auto Philippines Inc. (BAP) as well as the P30-billion bond issue of property developer Megaworld Corp. and the P5-billion bond issue of schools operator STI Education Services Group.

Both bond issues are under the SEC’s three-year shelf registration program.

Bermaz will be the second IPO for 2017 after Wilcon Depot Inc’s P7.9-B listing on March 31. The Mazda distributor will still need to secure the approval of the Philippine Stock Exchange (PSE) for its planned IPO.
Bermaz plans to offer up to 155 million shares priced at a maximum of P8 each, within the first half of 2017.

The offer shares consist of 83.43 million primary shares from Bermap and 71.57 million secondary shares from selling shareholders, which include Berjaya Philippines; Bermaz Motor International Ltd.; Prima Merdu Sdn Bhd; Tan Tech Wah; and Terrific Dynamics Sdn Bhd.

Proceeds from the IPO will be used for the construction of a warehouse and body repair and paint facility (P400 million), a training facility for auto repair and motor services (P50 million), and showrooms and satellite outlets (P188.5 million).

Bermaz is the distributor of Mazda vehicles in the Philippines under its Malaysian parent Bermaz Auto Berhad.

Megaworld, STI bond issues

Megaworld’s P30-billion bond program seeks to finance its capital expenditures in the next few years. Within the month, it targets to issue an initial P12 billion worth of bonds due 2024, inclusive of a P4-billion oversubscription option.

Its bond program was rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings), the highest rating assigned by PhilRatings, indicating that the bonds are of the highest quality with minimal credit risk.

Megaworld is the property vehicle of tycoon Andrew Tan under conglomerate Alliance Global Group Inc.. It has programmed a capital spending of P285.5 billion from 2015 to 2019.

Meanwhile, STI is raising P5 billion from its three-year bond program to support its campus expansion projects and other general corporate requirements. It will issue the initial tranche worth P3 billion this month, which will be in seven- and 10-year tenors.

Its bonds were rated PRS Aa by PhilRatings, indicating the issue is “high quality and subject to very low credit risk.”

At present, STI ESG operates 32 company-owned and another 32 franchised STI colleges nationwide. It also has 12 education centers, five of which are company-owned. STI ESG is 98.66-percent held by listed parent firm STI Holdings Inc., led by businessman Eusebio Tanco.

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